INTELLIGENCE REPORT
BUYER: DEFENSIVE

Nickel Intelligence Report

July 20, 2026 · Intelligence Report · Nickel (LME / SHFE)

Market diagnosis: The nickel market correction continues — LME cash at $16,725/mt, down 14% from the April peak of $19,350, as contango ($145) and near-record combined inventories (~374kt) cap upside despite tightening fundamentals. The structural supply story remains intact: Indonesian RKAB quotas at 260-270 Mt (29% cut from 2025), the Weda Bay suspension, and the Middle East sulfur crisis persist. INSG revised to a 32kt deficit (first since 2021). But SHFE nickel stocks hit an all-time high of 99,400 tons, and combined inventories remain near the highest since 2015, giving the correction room to run. The July 31 Indonesia RKAB decision is the key catalyst for H2 2026.

LME Cash
$16,725
$/mt · July 20, 2026
LME 3-Month
$16,870
$/mt · July 20, 2026
WoW Change
-2.48%
from $17,150 · Jul 17 close
Combined Inventories
~374kt
LME 274kt + SHFE 99kt · Jul 20, 2026
SHFE Nickel
¥144,850
CNY/mt · July 20, 2026
Deficit / Surplus
-32kt
INSG 2026 revised · Narrowing
YTD Change
-0.2%
from ~$16,760 · Jan 2, 2026
Forward Curve
Contango $145
3M $16,870 > Cash $16,725 · Jul 20
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